However, Morgan warned that encryption statistics can be misleading and do not necessarily indicate an insecure system.

"Just because data is encryption disabled does not necessarily mean that it is insecure. Many companies do not need to be concerned with the confidentiality of the data they send," he said.

Regardless of the needs of corporate encryption, the report found that an estimated 70 percent of companies within the CBD of all major Australian cities rely on the rudimentary security mechanism, Wired Equivalent Privacy (WEP) to provide authentication and encryption.

Developed as an industry standard and used primarily for encryption, WEP is riddled with flaws and can be cracked in a matter of seconds said Morgan.

"There are a lot of misconceptions about the inherent technology in wireless networks," Morgan said. "Because it's a rapid growth technology, a lot of people sell but few people focus on the design, implementation and support elements."